Royal Dutch Shell in Nigeria:

Operating in a Fragile State

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 Introduction

ë Founded on 1936
ë Largest oil company (SPDC)
ë 10,000 employee
ë Share holding Ȃ NNPC (55%), Shell (30%),
TotalFinaELF (10%), Agip (5%)
Question 1:
Shell has been in Nigeria for more than 60 years. What has made Shellǯs
operations in Nigeria more at risk and simultaneously more valuable?

ë SPDC was named villain of the Nigerian

environment
ë Irresponsible company
ë Dan Etete said that Shell was short Ȃ changing
the government and people of Nigeria.
ë Friends of Earth, charged: Shell distorting its
core values and impoverishing the people.
Question 1 (Con) :
Shell has been in Nigeria for more than 60 years. What has
made Shellǯs operations in Nigeria more at risk and
simultaneously more valuable?

ë Develop and promote a safer and more

peaceful environment.
ë First energy company to support CSR
ë Good timing to promote company
image
Question 2
What political risks does Shell face in Nigeria?

ë Niger Delta is a very difficult place

ë Communal Violence
ë Ijaw and Itsekeri ethnic militias
Question 2 (Con) :
What political risks does Shell face in Nigeria?

ë Communal Violence
ë Armed conflict
ë Occupation
ë Hostage taking
ë Extortion
ë Public and private sector corruption
Question 3 :
Does Shell have the option to pull out of
Nigeria?

ë No, Shell donǯt have any option to pull

out of Nigeria
ë Pioneered the Nigeria oil and gas
industry
ë Owned large reserves of oil and gas
Question 3 (Con) :
Does Shell have the option to pull out of
Nigeria?

ë Corporate social responsibility

ë Employed 10,000 people, 95% were
Nigerian
ë Nigeria government heavily dependent
on oil-sector revenue
Question 4 :
How the roles of the government and the
multinational companies differ?

Nigeriaǯs government
ë Provide the necessary protection
ë Provide to the public, report about oil
trade
Question 4 (Con) :
How the roles of the government and the
multinational companies differ?

àultinational companies:
ë Support community development
ë Corporate social responsibility
ë Sustainable community development
Question 5:
what underlying assumptions, observation, and
recommendations should Benjamin Aaron include in this brief?

ë Environmental friendly
ë Positive contributions toward society
ë Provide employment opportunities
ë àaintain good communication and relationship
between the management and worker.
 Conclusion

ë The Political risks of Nigeria is difficult to

solve.
ë People identify that Shell was a
irresponsible company
ë CSR and SCD
 List of References

ë Cullen, J.B. & K. P. Parboteeah (2010) Y
  
 


   . 5th edition. South-Western Publisher: USA
ë Shell.com (2011) Sustainable development. Retrieved on 18
àarch 2011 available from
http://www.shell.com.ng/home/content/nga/environment_so
ciety/taking_an_integrated_approach/
ë Shell.com (2011) Environmental Challenges. Retrieved on 18
àarch 2011 available from
http://www.shell.com.ng/home/content/nga/environment_so
ciety/taking_an_integrated_approach/environmental_challen
ges/